Road funding/tax hike deal

To place before voters in a May 5, 2015 election a constitutional amendment increasing the state sales tax from 6 percent to 7 percent. This is part of a package that represents a net tax increase of $1.945 billion, of which $1.2 billion would go to road repairs and the rest to other spending. The next several bills will not go into effect unless voters approve this measure on the May 5 election.

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House Bill 5477, Increase Gas and Diesel Tax: Passed 23 to 15 in the Senate

To replace the 19 cents per gallon gas tax and 15 cents diesel tax with a 14.9 percent wholesale fuel tax, which at current prices is 41.7 cents per gallon for gasoline and 46.4 cents for diesel. The increases would be mostly, but not completely, offset by exempting fuel sales from the state sales tax. However, this is contingent on voters approving the large net tax increase represented by a sales tax increase on a May 5 ballot.

To increase vehicle registration taxes on trucks, electric vehicles and cars more than three years old. This would cost vehicle owners around $95 million more each year, but will not go into effect unless voters approve a sales tax increase on a May 5 ballot.

To increase the state Earned Income Tax Credit, which will distribute $260 million to low income wage earners. However, this is contingent on voters approving a sales tax increase tax on a May 5 ballot.

Senate Bill 423, Require public school spending “adequacy” study: Passed 20 to 18 in the Senate

To require the state budget agency to contract for a study to determine how much money per student is needed for a public school to educate students sufficiently well to meet state graduation requirements. Reportedly the bill was adopted to get Democratic votes on the sales tax increase described above, but it is not contingent on that measure’s approval by voters.

Senate Bill 658, Impose “Amazon tax” on internet purchases: Passed 83 to 27 in the House

To require merchants outside the state who have an affiliation with a different business located in Michigan to collect sales tax on purchases by Michigan residents, in the manner pioneered by internet retailer Amazon.com. This bill does not require voter approval of a sales tax hike like other bills in the $1.945 billion road funding/tax hike deal, but House passage was part of those negotiations. The Senate adopted the measure on Dec. 11.

The remaining bills in this report are not related to the tax increase/road funding package described above.

House Bill 4186, Revise criminal record expungement rules: Passed 38 to 0 in the Senate

To allow a person convicted of only one felony offense and not more than two misdemeanors, to apply to have the felony “set aside,” or expunged from the person’s public record. A person convicted of not more than two misdemeanors could apply to have one or both set aside. This would not apply to convictions for criminal sexual conduct, domestic violence or crimes punishable by life imprisonment.

Senate Bill 78, Restrict setting aside state land for “biological diversity”: Passed 59 to 50 in the House

To prohibit the Department of Natural Resources from designating an area of land specifically for the purpose of achieving “biological diversity”; to no longer require the DNR to manage forests in a manner that promotes “restoration”; and to remove from statute a legislative ”finding“ that most losses of biological diversity result from human activity.

House Bill 4480, Require more detailed reports on corporate subsidy costs, outcomes: Passed 37 to 0 in the Senate

To require state economic development agencies to submit and post online more detailed reports on the costs and outcomes generated by their various loan, tax break and subsidy programs targeted at specific corporations, developers or industries.

To eliminate county concealed weapon licensing boards, and transfer the responsibility for administering and issuing concealed pistol licenses to county clerks, with the State Police still performing the background checks required by the law.

To establish that fixed-fee medical retainer agreements between a physician and a potential patient covering routine health care services are not considered “insurance” subject to the extensive regulatory regime imposed on conventional health insurance policies. This could presumably apply to “direct primary care” agreements, “concierge medicine” and similar innovations.

To extend through 2019 an annual $75 million earmark to a “21st Century Jobs Fund” program created by the previous administration, which provides various subsidies to particular firms or industries chosen by a board of political appointees. Under current law, the earmark expires in 2015.

To establish a presumption that, for purposes of granting workers compensation benefits, certain cancers contracted by non-volunteer firefighters arose out of their employment. The burden of proof would be on the employer to show the disease was due to smoking, nonwork-causes or specific incidents. Any benefits would be contingent on the legislature appropriating money for them.

SOURCE: MichiganVotes.org, a free, non-partisan website created by the Mackinac Center for Public Policy, providing concise, non-partisan, plain-English descriptions of every bill and vote in the Michigan House and Senate. Please visit http://www.MichiganVotes.org.

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